Plastiq, a modern payment company that provides flexible, convenient, and secure payment options, recently announced to have secured $75 million in a Series D funding round led by B Capital Group. Khosla Ventures, Kleiner Perkins, Top Tier Capital Partners and Accomplice also participated in the round.
Reportedly, the recent funding round brings the firm’s total known venture capital raised to over $140 million.
For the record, Plastiq platform enables users to upload their credit card information and charges a 2.5% fee and gets the customer’s bills paid. Plastiq was started with small-medium business enterprises in mind which accounted for 90% of the revenue. The company aims at empowering small businesses by facilitating credit card payments during off-season.
The company plans to invest the recently raised capital to bring out features for giving businesses faster services around payments and processing. Plastiq provides a way for consumers and businesses to pay their bills while having hold of a reliable cash flow. For instance, restaurants generally experience a drop in revenue due to seasonality but still need cash flow. By using Plastiq service, they can use credit cards to pay suppliers even in the off season.
Apparently, there is no shortage of competition from other companies also trying to alleviate the pain point of cash flow across small-business customers. The biggest competitors against Plastiq are traditional lenders, and companies like Fundbox and Kabbage. Brex is another platform that provides credit card for startups to procure capital faster.
In a press release, Plastiq reportedly said that is also on track to make more than$ 2 billion in transactions. However, unlike Kabbage, the company does not issue credit or loans, it just creates another payment opportunity.